New Money Will Bring
Smaller Government

Updated Jan. 6, 1999 12:01 a.m. ET

By David Malpass, chief international economist at Bear Stearns.

C entral planners across Europe let out a wild cheer on Dec. 3, when the continent "coordinated" its interest-rate cut. If central banks, those bastions of laissez-faire economics, can harmonize, why not tax authorities, regulators, educators and welfare administrators? The possibilities for more government seem endless now that 11 European Union countries...